Subsidizing the Competition
While this was a plan to stimulate American manufacturing, there were many options. The International Business Times reports this:
"To earn the tax credits, projects had to be based in the U.S., and a “Buy America” clause was included to boost domestic manufacturing. But the clause had a loophole: It would be waived if “the relevant manufactured goods are not produced in the United States in sufficient and reasonably available quantities.” Because of the relatively small solar manufacturing capacity in the U.S., domestic solar installation companies receiving stimulus money would be allowed to purchase panels from overseas, undercutting U.S. manufacturers. But that’s not all — while roughly 70 percent of the grant recipients were American companies, there were at least 17 foreign-based companies receiving 48C tax credits that had already arranged for solar or wind manufacturing operations in low-wage nations, according to a 2010 report from a project of the BlueGreen Alliance Foundation, an environmental nonprofit. Six U.S. companies that were awarded tax credits, including First Solar and Sun Power, already had manufacturing operations in low-wage, East Asian countries such as China, Malaysia and the Philippines."
So instead of boosting US solar manufacturing, the government essentially paid companies to import them from abroad--and to compete with American manufactured goods.
We should certainly let these giant brained guys write more economic laws for us, taxes and health care especially.
The only reason governments win any wars is because the losing enemy is also a government.
In January 2009, when President Obama came into office, he pledged to revive the recession-afflicted economy with a fiscal stimulus plan. Congress obliged by passing the $787 billion American Recovery and Reinvestment Act of 2009, which, among other things, gave a generous tax credit to clean-energy companies.
While this was a plan to stimulate American manufacturing, there were many options. The International Business Times reports this:
"To earn the tax credits, projects had to be based in the U.S., and a “Buy America” clause was included to boost domestic manufacturing. But the clause had a loophole: It would be waived if “the relevant manufactured goods are not produced in the United States in sufficient and reasonably available quantities.” Because of the relatively small solar manufacturing capacity in the U.S., domestic solar installation companies receiving stimulus money would be allowed to purchase panels from overseas, undercutting U.S. manufacturers. But that’s not all — while roughly 70 percent of the grant recipients were American companies, there were at least 17 foreign-based companies receiving 48C tax credits that had already arranged for solar or wind manufacturing operations in low-wage nations, according to a 2010 report from a project of the BlueGreen Alliance Foundation, an environmental nonprofit. Six U.S. companies that were awarded tax credits, including First Solar and Sun Power, already had manufacturing operations in low-wage, East Asian countries such as China, Malaysia and the Philippines."
So instead of boosting US solar manufacturing, the government essentially paid companies to import them from abroad--and to compete with American manufactured goods.
We should certainly let these giant brained guys write more economic laws for us, taxes and health care especially.
The only reason governments win any wars is because the losing enemy is also a government.
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